Money and Finance: Crash Course Economics #11

  • 🎬 Video
  • ℹ️ Description
So, we've been putting off a kind of basic question here. What is money? What is currency? How are the two different. Well, not to give away too much, but money has a few basic functions. It acts as a store of value, a medium of exchange, and as a unit of account. Money isn't just bills and coins. It can be anything that meets these three criteria. In US prisons, apparently, pouches of Mackerel are currency. Yes, mackerel the fish. Paper and coins work as money because they're backed by the government, which is an advantage over mackerel. So, once you've got money, you need finance. We'll talk about borrowing, lending, interest, and stocks and bonds. Also, this episode features a giant zucchini, which Adriene grew in her garden. So that's cool.

Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever:

Fatima Iqbal, Penelope Flagg, Eugenia Karlson, Alex S, Jirat, Tim Curwick, Christy Huddleston, Eric Kitchen, Moritz Schmidt, Today I Found Out, Avi Yashchin, Chris Peters, Eric Knight, Jacob Ash, Simun Niclasen, Jan Schmid, Elliot Beter, Sandra Aft, SR Foxley, Ian Dundore, Daniel Baulig, Jason A Saslow, Robert Kunz, Jessica Wode, Steve Marshall, Anna-Ester Volozh, Christian, Caleb Weeks, Jeffrey Thompson, James Craver, and Markus Persson


Want to find Crash Course elsewhere on the internet?

Download — Money and Finance: Crash Course Economics #11

Download video
💬 Comments on the video

*Main outtakes of this lesson*
1) Money serve three main purposes:
- Medium of exchange. It is generally accepted for payment for goods and services.
- Store of value. Money can be stored.
- Unit of account. Money is standartized metric that helps us measure value of things.
2) Financial system.
a. Lenders
b. Borrowers
c. Governments
d. _Capital_ - the machinery, tools and factories owned by a business and used in production.
e. _Financial system_ is a network of institutions, markets and contracts that brings lenders and borrowers together.
f. _Debt_ - if you get a loan from the bank, you are obligated to pay back the amount you borrowed plus the amount of interest.
g. _Equity_ - the difference between the value of the assets/ interest and the cost of liabilities of something owned.
h. _Financial instrument_ - a tradeable asset of any kind.
i. _Financial institution_ - an establishment that conducts financial transactions such as investments, loans and deposits.
j. Financial markets with instruments like stocks and bonds, allow borrowers to crowdsource the money they need to borrow. They raise their capital from lots of investors, and spread the risk around.

Author — Сергей Галиуллин


10 BITCOIN FOR A ZUCCHINI? That zucchini better be embedded with gold or something, damn.

Author — killerfrenchy


I mean, she should have expected the zucchini jokes...

Author — Andre Vieira


Does Patreon accept Zucchinis as payment?

Author — Ryan Tsui


10 bit coins ($2, 500) for zucchini? what is she smoking?

Author — Vaibhav Gupta


Dear Crash Course Economics team, I want to thank you for everything. A few weeks ago, I was panicking because my academic decathlon competition was coming up and I knew nothing of economics. What did I do? I watched all your videos and as a result I received a medal in economics!!! Thank you for everything. Continue the good work!!!

Author — Jacqueline Arteaga


Some notes if anyone needs em!

-Barter system is the alternative to money, but is highly inefficient
-Money serves as a medium to exchange, store of value, and a unit of account
-In the past we had the gold standard which connected each dollar to a value of gold
-Stock market is part of the Financial system which is composed of Lenders (corporations and households) and borrowers (households, businesses, governments)
-Financial system = a network of institutions, markets, and contracts that brings lenders and borrowers together
-3 ways this happens: banks, bonds, stock market
-Banks deal with debt, stocks deal with equity (the difference between the value of assets/ interests and the cost of the liabilities of something owned)
-Financial instrument = a tradeable asset of any kind
-Banks are Financial Institutions = an establishment that conducts financial transactions such as investments, loans, and deposits

Author — Stas Pakhomov


PS: that's actually a bad zucchini, when they get that big they are pig fodder

Author — Entropy3ko


A minor correction, bitcoin is *not* anonymous; it is pseudonymous. All transactions that have ever occurred since Bitcoin's inception is permanently recorded on the public world-wide ledger. There're no names and identities associated with each transaction but it doesn't mean someone can't figure out who made those transactions with some research. In fact, there are already tools to help assist with this.

Given that fact, using bitcoins for illicit transactions is ill advised; fiat cash like dollars and euros is better suited for that purpose.

Author — greatwolf


Crash Course= A + I wish my college Professors went to Crash Course College =)

Author — Marvin Theodore Sr.



Author — Sierra Rissell


Did anyone else notice the bag of chips in the black and white picture?

Author — Mickey Odunikan


This is the best video in the series so far. Straightforward, easy to follow, and no political stalking horses.

Author — J. D. Montgomery


where did you get this african zucchini.?

Author — birender singh


Now I'm imagining somebody tryna steal 4 tons of limestone.

Author — Daniel John Kirby


2:09 there is a bag of ruffles hidden in the photo

Author — Gu Productions /\/


"The most important single central fact about a free market is that no exchange takes place unless both parties benefit." - Milton Friedman

Author — Naveen


you want 10 bitcoins for that? (= 2200 euro)

Author — samramdebest


Ruffles must have been around forever...

Author — xccmx


OMG! Love this!
Thanks for actually speaking at a rate that I can follow. Other videos are edited and sliced together so tightly that it has NO pauses in between sentences for the information to sink in.

Author — bxcinderella